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EpicRandy on 25 July 2020
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eva01beserk said:
EpicRandy said:

The thing is blockbuster movie/series cost way more than AAA games to make. So the same kind of subscription service will probably produce more AAA than Netflix can produce Blockbuster. Not to mention filler are not a bad thing. I spend more time gaming on Stardew Valley, Don't Starve, Factorio, Oxygen not included, Banished than any AAA over the the last few years. 

But I have no issue at all with smaller games. My issue is with people actually buying into MS pr about them shooting for 3-4 AAA games a year. Thats just not happening ad long as gamepass is their goal.

And AAA games are getting really costly. Games like call of duty cost like 50m to make and 4x more on marketing. We have rumors of Destiny costing 500m with all. Rockstar games also float around 500m. Big AAA games are really expensive now. While movies are probably more expensive I don't think regular shows are more expensive than even average AAA games.

500M for destiny franchise was including expected cost of infras support for 10 years and marketing cost.

Rokstar GTA 500M budget for GTAV is far from the norm and was only possible because there were basicaly no risk in doing so.

I'll say 40M to 100M (including marketing) is probably where the vast majority of AAA is.

Marketing cost could also be dramatically lowered with Gamepass, I hardly ever saw commercial for netflix content. Investment into other project might just be a better marketing investment in the long run than pure marketing investment in this model.

I say 3-4 AAA/year is not out of questions, far from it. All will depends on mass adoptions of the service, right now it's 10M+ which should bring about 1B$+ in revenue/year depending on how revenue are split between AAA, AA, third party deals and operating cost (which I doubt are that high) it could already be enough 3-4 AAA.

The key here is how Microsoft will bring Game pass from a 10m subribers to 20m, 50m, 100m and for this aspect the Showcase give a great insight. It basically tell Microsoft will not shy away from investment into Gamepass.